First quarter (
- The
H&M group's net sales amounted toSEK 53,699 m (54,872). -
Gross profit increased by 7 percent to
SEK 27,655 m (25,886). This corresponds to a gross margin of 51.5 percent (47.2). -
Operating profit amounted to
SEK 2,077 m (725), corresponding to an operating margin of 3.9 percent (1.3). Adjusted for result from investments in associated companies and joint ventures ofSEK -14 m (999) the operating profit amounted toSEK 2,091 m (-274), corresponding to an improvement in profit ofSEK 2,365 m. -
The result after tax increased to
SEK 1,201 m (540), corresponding toSEK 0.75 (0.33) per share. -
Cash flow from operating activities amounted to
SEK 3,967 m (4,986). -
Financial net cash amounted to
SEK 6,585 m (10,424). Cash and cash equivalents plus undrawn credit facilities wereSEK 38,710 m (38,923). -
Currency adjusted the stock-in-trade decreased by 7 percent compared with the previous year. Converted into SEK the stock-in-trade decreased by 8 percent to
SEK 37,630 m (41,040). The stock-in-trade in SEK represented 16.0 percent (17.9) of rolling 12-month sales.
-
The
H&M group's sales in the period 1 -25 March 2024 increased by 2 percent in local currencies compared with the same period the previous year. -
As previously communicated, the
H&M group andVargas Holding have co-founded Syre, which aims to rapidly scale textile-to-textile recycling of polyester and contribute to a more sustainable textile industry. -
Today the
H&M group publishes its annual and sustainability report 2023. Among other things, the report shows a 22 percent reduction in greenhouse gas emissions in 2023. In relation to sales in SEK the decrease was 23 percent.* -
The annual general meeting will be held on
3 May 2024 to resolve, among other things, on the board's proposed dividend ofSEK 6.50 per share, to be paid in two instalments, and on a general authorisation allowing the board to buy back the group's own B shares in the period up to the 2025 annual general meeting. This general authorisation is one of the tools for the board to use if surplus liquidity is identified. If the annual general meeting authorises the board and the board chooses to utilise this authority, amounts and other details will be communicated.
"Development continued in the right direction in the first quarter with an improved gross margin and operating profit, lower inventory and strong cash flow. Our top priority is to continue improving the customer offering, the store experience and the supply chain in order to increase sales."
- Daniel Ervér, CEO.
* Refers to science-based targets for the company's entire value chain in scope 3 and excludes the use of sold products. The baseline is 2019. By 2030 at the latest the
** Stock-in-trade in SEK as a share of rolling 12 months sales.
Comments by Daniel Ervér, CEO
We have a fantastic position with billions of visits a year to our physical and digital stores. We have more than 200 million customers in our loyalty programme, in a global market that external market analysts expect to grow by more than 5 percent a year up to 2028. With our long-term and high ambitions for a sustainable fashion industry, I am pleased and humbled to be entrusted with leading the
In the first quarter we continued to take steps in the right direction, with a gross margin of 51.5 percent, a substantial improvement in operating profit to
We are fully focused on driving profitable growth going forward. Our stronger gross margin enables us to enhance the customer offering further and provide more value for money through improved quality and better prices. We are strengthening all parts of our assortment and our design organisation's most important mission is to create attractive collections. The upgrading of our stores is being accelerated, for added inspiration and relevance to customers. We are refurbishing around 250 stores globally in 2024, including in
The main focus for me and all my colleagues is on creating the best offering for our customers. Our priorities remain firm: to enhance the assortment, always offer the best price, create inspiring experiences in both physical and digital environments, and to strengthen our brands. Thanks to the investments being made in tech, the supply chain and sustainability, combined with continued cost control, committed colleagues and a long-term perspective, we see good opportunities for profitable and sustainable growth.
Today the
We continue to plan our business with respect for a challenging situation in the world around us where consumers remain affected by inflation and high interest rates. In this situation our customer offering is more relevant than ever. Our top priority is to strengthen sales, and our target of a 10 percent operating margin for full-year 2024 thus remains in place.
* For own operations (scope 1 & 2) and for the rest of our value chain (scope 3) and excluding use of sold products.
Communication in conjunction with the three-month report
The three-month report, i.e.,
For log in details for the three-month report telephone conference please register via this link: https://app.webinar.net/Bo9xPemPy5G
To book interviews in conjunction with the three-month report on
Contact
+46 73 465 93 92 | |
Daniel Ervér, CEO | +46 8 796 55 00 (switchboard) |
+46 8 796 55 00 (switchboard) |
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office:
For more information about the
Information in this interim report is that which
https://news.cision.com/h---m-hennes---mauritz-ab/r/h---m-hennes---mauritz-ab-three-month-report,c3953163
https://mb.cision.com/Main/769/3953163/2699293.pdf
(c) 2024 Cision. All rights reserved., source